Global recycling leader Sims (ASX:SGM) announced a strategic $94 million agreement to acquire the assets of Tri Coastal Trading in Houston.
The deal secures Sims exclusive access to a prime deep-sea docking facility and harbourside land in the Galena Park industrial area, effectively removing the logistical bottlenecks that have historically capped the company’s regional growth.
By consolidating its ferrous operations onto the TCT site, Sims will replace its existing service agreement with TCT’s Enstructure business, a move expected to streamline logistics across truck, rail, barge, and bulk shipping lanes.
The acquisition is part of a broader "asset-light" pivot in the Houston market. Alongside the purchase, Sims confirmed it will divest its local land portfolio—including the Mayo Shell property—with total sale proceeds estimated at $100 million.
"TCT is an ideal solution," said Stephen Mikkelsen, Sims CEO and Managing Director. "We free up all our Houston land for sale, avoid significant capital expenditure... and meaningfully grow our EBITDA, EBIT, and ROIC."
Following the integration, Sims projects the combined Houston operations will generate an annual EBITDA in excess of US$25 million at current market prices, driven by significant administrative cost savings and enhanced domestic and international export capabilities.
At the time of reporting, Sims' share price was $21.26.